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The FCC has voted to begin drafting a new rule that would require broadband and cable companies to be more transparent about hidden fees, data caps, and other restrictions that often remain undisclosed or difficult to understand.
The proposal comes after major companies like Comcast and AT&T have fallen under fire for what many consider shady business practices, with the latter suffering FCC fines for falsely advertising “unlimited” data and then covertly imposing limits anyways.
The initial proposal, which was first introduced way back in 2016, states that ISPs could provide extensive transparency via “nutrition labels” like those found on food packages. “In a grocery store nutrition labels make it easy to compare calories & carbohydrates,” FCC boss Jessica Rosenworcel said. “We need the same simple labels for broadband—so we can compare price, speed & data. No more fees in fine print.”
After being shelved by the previous presidential administration, Congress ensured that President Biden’s recently-passed infrastructure bill included a revival of the FCC’s idea. Even so, the FCC needs a majority vote in order to push the new requirements through, which will require some key nominations to take place. Once the majority is established, the new rules are expected to pass.
In other consumer protection news, Microsoft will begin canceling dormant Xbox Live Gold and Game Pass subscriptions as part of an agreement with the Competitions and Market Authority. Though the new practice is only active in the UK for now, it’s expected to roll out globally in the coming months.
